The Domino Effect: The Devastating Impact of the CGT Strike on Argentina’s Economy and Global Connectivity

The national economy is facing a loss of $62 million in tourism spending due to the General Confederation of Labor (CGT) strike on Thursday. This is because of the cancellation of at least 700 confirmed flights, affecting 90,000 passengers. The Latin American and Caribbean Air Transport Association (ALTA), which represents 160 companies including 45 airlines, expressed concern about the impact of the strike as it controls more than 80 percent of the region’s air traffic and 94 percent of the Argentine market.

During the strike, Argentina will be practically cut off by air in both domestic and international markets. Only two airlines, Flybondi and American Airlines, will operate flights while other airlines have canceled all scheduled flights. Flibondi has moved its operations to Ezeiza International Airport and will operate 68 flights, while American Airlines will also be operational. However, this has resulted in significant economic losses for the country as direct losses to the national economy due to tourist spending are estimated at about US$62 million per day.

The impact of the strike will not only affect tourism but also disrupt connectivity with other countries that have a direct connection to Argentina. It will also cause a domino effect on multiple industries that depend on air transport such as trade, business travelers, and cargo shipments. ALTA recognizes workers’ right to strike but calls for immediate and negotiated solutions to minimize economic and social damage caused by this action.

Air traffic disruption will not only affect tourism and international trade but also disrupt regional and global connectivity. ALTA emphasizes finding a solution for re-establishing air traffic functionality as quickly as possible while minimizing negative impacts on businesses, people’s livelihoods, and economies across various sectors.

In conclusion, the CGT strike has resulted in significant economic losses for Argentina due to canceled flights affecting thousands of passengers worldwide. The impact on air transport value chain goes beyond just aviation industry but affects many other sectors that rely heavily on it such as commerce, trade